U.S. Home Price Growth Slows Sharply as Supply Rises and Demand Weakens

U.S. home price growth slowed to 2.7% in April, down from 3.4% in March, marking the smallest annual gain in nearly two years, according to the S&P CoreLogic Case-Shiller Index. Rising supply and high mortgage rates, which topped 7% in April, are cooling prices and weakening demand—particularly among first-time buyers, who now make up just 30% of sales. Formerly hot Sun Belt markets like Tampa and Dallas are seeing price declines, while Midwest and Northeast cities such as New York, Chicago, and Detroit lead in gains. Despite growing supply, housing remains underbuilt and constrained, helping to prevent a major market correction.